2. U. S. POLICY TOWARD FORMOSA AND TEE GOVERNMENT OF THe REPUBLIC OF CHINA (Nise 5503; Memo for NSC from Executive Secretary, subje t: "Report by the Interdepartmental Committee on Certain J 5S. Aid Programs", dated December 5, 1956; NSC Actions Nos. 131: -e-(2) end 1624-c; NIE 43-2-57; Memos for NSC from Bxecutive Secretery, subject: ™y. S. Policy Toward Formosa and the Governnen’ of the Republic of China", dated Septemper 9 and 19, 1957: Nsc Action No. 1790) In view of the length of his briefing of the Coun il on this subject at last week's Council meeting, Mr. Cutler's briefing note (which is ineluded inthe minutes of the meeting) was somewhat shorter in length. He also pointed out that Secretary Dull's had requested a delay in the Council action last week in order “c ascer- tain the opinions of Under Secretary Herter and Mr. James P Richards, Special Assistant to the President. He then called on Serr tary Dulles. Alluding to the Tact that Under Secretary Herter ond Mr. Richards had recently been is. the Far East, Secretar, DuUles said that the State Department hed asked Mr. Richards in pavticular to study the situation on Taiwan in order to get a fresh aporeisal of the effectiveness of our polizies there. Accordingly, Secretary Dulles asked if Mr. Richards might speak first and give his impressions, after which he, Secretary Dulles, would like te make further comments. Ambassador Richards indicated that he had stayed over or Taiwan for a longer period than Secretary Herter, in order 30 Look more thoroughly into the situation on the island. From ell the evidence that he, Mr. Richards, could find, he had come *c tne conslusion that 1t would be disastrous now to change cur present ».olicy with respect to Taiwan, though he said he did not know the limitations with respect to availatle appropriations for ctarrying out our policy in Taiwan. If, beceuse of such limitations, any reductions have to be made in our essistance to Taiwan, such veduztions should be made in a world-wide context and in terms of the ‘ongres- » REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBRARY ~ a sional Resolution (Fublic Law 4, Skth Congress). 2 “rae TOP SECRET n The Nationslists, continued Mr. Richards, had urged on him the view that discontent in mainland China might offer the opportunity for armed intervention by the Nationalists at some future time. Mr. Richards thought that we should take this view into account, as well as taking need of she general situation in the Far East. Again he said it would v.disastrous everywhere else in free Asia, and particularly ir Southeast Asia, if the United States drastically changed its volie 22 on Taiwan. - TOP SECRET

Select target paragraph3